As the Indian economy grows, they too will grow. Some slowly, a few faster: 8 NBFC stocks stocks with upside potential of up to 46%

Synopsis
Let’s ask ourselves three simple questions. One: Is the financial services sector better placed after the RBI’s clean-up? Two: If an economy like India grows, can it be that this sector does not grow? Three: Can FIIs, whose selling caused sectoral underperformance, stay away from these stocks when they return? The answer to the first question is yes. And it is a no for the second. The answer to the third question was open, but now it seems to be veering towards a yes. As a sector, NBFCs will grow faster than many other sectors, because they provide credit. And credit was/is/and will remain in greater demand than its supply. So, a provider of credit is bound to grow as the Indian economy grows.

One sector which has been going through a clean-up both at the consumer end and the regulatory end has been the lending sector. How is the clean-up happening at the consumers’ end? Just look at the number of fintech companies which have come up in the lending space. This has made large players realise that they need to be ready to lend using technology. On the regulatory side, the RBI has been on the job, removing arbitrage and creating a

ETMarkets.com

13 mins read

Jun 10, 2025, 02:49:00 PM IST

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